Parkland Corp.’s refinery in North Burnaby will undergo a $600-million expansion to produce low-carbon fuel at its Burnaby refinery that aims to create jobs and reduce emissions, says the Province of B.C.
The upgrade will increase production of low-carbon fuels to about 700 million litres per year by 2026, says a news release.
With support for more than 40% of the project costs in the form of BC Low Carbon Fuel Standard compliance credits, the upgrade
will “create 1,000 jobs during construction and operation,” said the release.
“The Low Carbon Fuel Standard is an incredibly successful program and is the single largest contributor to reducing greenhouse gas emissions,” said Bruce Ralston, minister of Energy, Mines and Low Carbon Innovation. “LCFS is expected to lead to five million tonnes of greenhouse gas emissions reductions by 2030, accounting for 31% of the total emissions reductions required to meet our CleanBC climate targets. We are building on our successes and developing an even more effective tool to stimulate new jobs and investment in the production and use of cleaner fuels.”
The LCFS requires fuel suppliers to progressively decrease the average carbon intensity of the fuels they supply to users in British Columbia and encourages fuel suppliers to invest in low-carbon fuel alternatives. Under the LCFS, the province awards compliance credits to fuel suppliers for actions that increase the use of low-carbon fuels like hydrogen, electricity, renewable gas and diesel.
The Province has entered into multiple agreements since 2015 with Parkland under the LCFS to support trials and commercialization of co-processing at its Burnaby refinery.